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Retail Business Review | Friday, November 11, 2022
Consumer concern for single-use packaging waste calls for a change in packaging design.
FREMONT, CA: Regulators are calling for a change, and FMCG companies and retailers are improving their approach to packaging along the value chain. There will be a change in the production dynamics that will leave many industries vulnerable as they catch up. New packaging forms implemented strategically can open firms to partnership opportunities and growth.
Packagers must reconsider their approach to packaging by following sustainability regulations and measures.
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Factors that are driving change in packaging trends:
Waste accumulation in oceans and landfills: Packaging industries use plastic as packaging material, keeping in mind convenient transportation and accessibility. Single-use plastic is accumulating in landfills and oceans due to certain waste management challenges:
Recycling practices: Packaging materials are largely unrecyclable by current recycling systems. Multi-material packaging is more difficult to recycle, aggravating the situation.
Leakage: The frequency of recycling packaging material is low. Global leakage of mismanaged plastic waste is 19 percent, and only 16 percent is recycled to make more plastics. Unrecycled plastics are a loss as 25 percent are incinerated, and 40 percent are abandoned in landfills, making their way into the environment when they could have been used again.
Government intervention: Globally, governments are responding to environmental concerns and imposing regulations on single-plastic use. Governments are imposing sanctions to minimize waste and improve waste management.
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Fast Moving Consumer Goods (FMCG) companies: FMCG companies focus on high returns on profit at low production costs. They prioritize reducing packaging weight and quality of materials to lower costs. Recently, FMCG companies have shifted their packaging methods along the lines of the following measures:
Full recyclability: FMCG companies are now increasing waste recycling to 100 percent. They are incorporating a higher percentage of recycled plastics as packaging material.
Reduction of total plastics usage: Some products are exempt from packaging. The weight of the packaging is decreased, reducing the number of disposable materials. Companies are curbing the use of single-use plastics, such as plastic bags.
Innovation and promotion of change in packaging: Companies are rewarding consumers to forgo packaging options. Collaborating with partners is decreasing the consumption of plastics and encouraging the use of its substitutes.
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